FUTURES MARKETS

By The Associated Press

Published: July 20, 1996

Crude oil prices fell sharply on the New York Mercantile Exchange yesterday on expectations that Iraq would soon begin exporting oil.

On other markets, corn and soybean prices fell for a fifth day on signs of continued good weather for the crops.

Crude oil prices, which fell on Thursday, continued their slide yesterday following approval by the United Nations Secretary General, Boutros Boutros Ghali, of an amended Iraqi plan for distributing food and relief supplies. The supplies are to paid for by proceeds of a sale of as much as $2 billion of Iraqi oil.

As a result, the United Nations is expected to give final approval for a process that could bring Iraqi oil to world markets by the end of August, said Ed Kevelson, an analyst with Paribas Futures Inc. in New York.

The sale of the Iraqi oil will amount to only a little more than 1 percent of the current world supply, and will come at time when demand is relatively low.

In addition, Iraq's oil will come at a time when non-OPEC countries are expected to increase production, said Michael Rothman, an analyst with Merrill Lynch & Company.

Corn and soybean prices continued their weeklong slide on the Chicago Board of Trade amid prospects that recent rains will leave crops in better condition than they have been in more than a year.

Several inches of rain have fallen over much of the Midwest this week, and next week could bring moisture to areas that have missed out. The rain and warm temperatures are hitting just as corn begins pollinating and needs a lot of moisture, said Dick Loewy, an analyst with the Agresource Company in Chicago.

"The perception is that we have a good corn crop," he said. "Two-thirds to 75 percent of the crop is great."

Some areas of Illinois and nearby states have gotten more than 10 inches of rain, but most flooding was isolated and away from fields.

On the Chicago Board of Trade, corn for December delivery fell 7.5 cents, to $3.3775 a bushel, plunging 12 percent this week to its lowest price since May 7.